Open banking payment solution Boodil has launched a rewards and loyalty app. 

Users can check out via the Boodil ‘Pay by Bank’ solution at retailers that have enabled Boodil as a payment method, including Gorgeous Shop, Electric Tobacconist and UK Toolbox.

Doing so earns them points which can be used to enter a variety of prize draws including shopping vouchers, AirPods, spa days, holiday vouchers and cash.

Following a trial with a select number of users, Boodil has rolled out rewards and discounts from a variety of well-known retailers such as Travis Perkins, Domino’s Pizza and Dunelm.

Anyone can sign up to the app for free and connect their bank account for an extra 250 points per month, which provides them with more personalised rewards and offers based on actual spending behaviour. Users are also offered the ability to transfer any prizes they have won for a cash equivalent as an alternative.

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“American Express is a great solution which provides customers with points when they use their card; however, they charge the merchants significantly higher fees along with customers having to pay an annual fee for certain cards,” said CEO and co-founder Harry Luscombe. 

“The rewards available tend to favour and benefit those consumers with higher disposable income levels, with customers often having to spend tens of thousands each year to obtain meaningful value and benefit. 

“Given the current economic climate we are in, we wanted to create a value-led proposition that enabled more engaging and rewarding experiences for customers.”

Boodil raised £525,000 in pre-seed funding from angels last year.

Sam Owens, COO and co-founder at Boodil, added: “With inflation rates soaring to record highs, consumer spending habits are shifting. At Boodil we want to make the everyday spending experience fun, engaging and most importantly, rewarding. 

“It will also help our retail brands attract new high intent customers, increase loyalty and engage with new audiences.”

As well as exposure via the mobile app, retailers also benefit from reduced payment processing fees, according to Boodil, as well as instant settlement of funds and the elimination of chargeback fraud.